Stobart Air ceased operations on Saturday 12th June 2021. A regional carrier operating flights across the UK and Ireland, the Stobart Air fleet consisted of 12 ATR72-600 aircraft and one ATR42-600 aircraft according to data from IBA’s InsightIQ platform.
Of Stobart Air’s 13 aircraft, 12 were leased from lessors (see the graph below) and 1 aircraft was owned. The aircraft were between 5 and 8 years old, with build dates between 2013 and 2016.
GOAL Aircraft Leasing have the highest number of leased aircraft in Stobart Air’s fleet, with eight aircraft, leased to them through KGAL’s Aircraft Portfolio Fund 1. InsightIQ values data suggests that the current market value of the former Stobart Air fleet is approximately $126.400 million USD, assuming half-life maintenance condition. IBA would ascribe a market lease rental range of $95 – $115k USD per month in the current environment.
The ATR72-600 dominates the 70+ seat turboprop market segment it operates in. It’s key competitor, the DHC-Q400, has faced continued oversupply issues which have been exacerbated by the Coronavirus pandemic. Data from IBA’s InsightIQ fleet data platform shows that there have been five ATR72-600s sold off lease, and seven new lease starts with operators including Silver Airways and US-Bangla Airlines (since January 2021) Aircraft starting new leases were typically built between 2012 and 2019.In the long-term, IBA believe the ATR72-600 remains in favourable position when compared to its competitors, and will remain one of the most liquid assets in the turboprop market.
IBA expects the Stobart Air ATR72-600 fleet will find new operators, but likely at discounted pricing given the current state of the market and alternatives - the ATR72-500 being a prime example.
The pre-pandemic turboprop market proved to be a relatively stagnant one over the past 5 years, with an average 100 deliveries per year. Demand for aircraft was stimulated by volatility in oil prices, with turboprops having replaced smaller sized regional jets when prices fluctuated. Unfortunately, the pandemic has caused oversupply issues. Despite this, IBA expects the turboprop and regional aircraft markets to recover faster than that of larger commercial jets.
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IBA’s InsightIQ analysis platform flexibly illustrates multiple asset, fleet and market positions, actual and potential, to inform client choices and identify acquisition opportunities. Immediate access to crucial aircraft, engine, lease rate and fleet data eases appreciation of historic and future aircraft concentrations and operator profiles.
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IBA’s Phil Seymour investigates 3 key impacts that Covid-19 has had on the speed and efficiency of aircraft repossession and remarketing. This information was taken from IBA’s submission to the report ‘Aircraft Repossession Planning – Practical Considerations’ produced for Internal Comparative Legal Guides (ICLG) 2021.
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